Personal Injury Claims Market in the UK

by Catherine Stagg-Macey, April 12, 2011
Industry Trends



Despite safer cars, better roads, and recent decreases in road traffic accidents, there has been a 42% increase in bodily injury claims against insurers since 2001.

Personal injury claims costs have rocketed to almost 50% of all claims costs, and this has not gone unnoticed by the government. In a new report, Personal Injury Claims Market in the UK, Celent looks at the state of the UK motor market and at the possible impact of the Lord Jackson review, which has tabled wide-reaching and extensive regulation changes to make this system fairer and more transparent for all parties. Several of these proposals, including abolishing success fees, were accepted by the government last month.

The report also considers the role of personal injury estimating solutions, which can used by an insurance company’s desk adjusters and sometimes by its legal department and representatives. These solutions can perform some or all of five functions: indicating whether a reported injury is credible, given the circumstances of an accident; to what degree medical and rehabilitative treatment is appropriate; an assessment of comparative fault; a range for a general damages (pain and suffering) settlement; and support for negotiations with the injured third party and its legal representatives.

“One primary reason cited by insurers to use such estimation tools is to achieve higher levels of consistency in evaluating general damages payments for personal injury claims.” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance group and author of the report.

This report takes a look at the state of the UK motor market, and underlying issues of profitability. It summarizes key points of the Lord Jackson review and reviews and discusses the role of personal injury claims estimation tools.

This 18-page report contains three figures and three tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
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Table of Contents

Executive Summary


Overview of the UK Motor Market



Deteriorating Underwriting Results



Poor Operations Conditions Have Forced a Rise in Prices


Growing Personal Injury Claims Costs



Frequency and Severity of Bodily Injury Claims Have Increased in Recent Years


Regulation Changes



Ministry of Justice Road Traffic Accident Portal


The Role of Estimation Technology



Personal Injury Claims Estimation Tools



The Solution Market



Extending the MoJ Portal to Include Neutral Estimation Tool(s)




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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